Trading of JSC "Kaija" suspended

16.03.2004 RIG

RSE Management Board on its extraordinary meeting of March 16, 2004, resolved to suspend the trading of JSC “Kaija” shares. The reason is the failure of the issuer to disclose information to sufficient extent as stipulated by the provisions of Financial Instrument Listing Rules and Financial Instrument Market Law. As a result, the securities no longer meet the market safety and investor interest protection requirements.

“Kaija” has failed to provide the information requested by the RSE within the specified deadlines. This may have a material effect on the market price of the shares. The information provided by the issuer is incomplete and does not present a fair view about the issuer’s financial situation and business.

“Kaija” still has not provided the following information:

– a complete non-audited annual report for 2003, including balance sheet, profit and loss statement, cashflow statement, statement on changes in equity, and notes;

– Management Board report on draft budget and development prospects for 2004; Management Board opinion about the capability of the issuer to meet the liabilities; planned business operations;

– Company restructuring plan and documents confirming the resolutions taking with regard to restructuring – excerpts from the minutes of general meeting of shareholders, of Management Board and Supervisory Board meetings;

– Information about accounts payable to credit institutions, suppliers and other creditors.

The company also has to provide, by April 30, 2004, audited Annual Report for 2003; auditor’s opinion on the Management Board report; the actual capability of the company to fulfil the assignments mentioned in the report and to attain financial results.

The trading of “Kaija” shares has been transferred to Surveillance list starting with February 16, 2004.

Krista Grīntāle
Director of Coroprate Communications Department
Phone 7212431